14.4 Stop-LosS Strategy This involves Buying 100,000 shares as soon as price reaches $50 Selling 100,000 shares as soon as price falls below $50 This deceptively simple hedging strategy does not work well Options, Futures, and other Derivatives, 5th edition 2002 by John C. HullOptions, Futures, and Other Derivatives, 5th edition © 2002 by John C. Hull 14.4 Stop-Loss Strategy This involves: • Buying 100,000 shares as soon as price reaches $50 • Selling 100,000 shares as soon as price falls below $50 This deceptively simple hedging strategy does not work well